JPMorgan Chase Institute’s Local Consumer Commerce Index Shows a 3.6 Percent Increase in Consumer Spending Growth – Press Release

WASHINGTON–(Business Wire)–Today, the JPMorgan Chase Institute released its Local
Consumer Commerce Index (LCCI)
for April 2017, which showed positive
consumer spending growth in 13 of the 15 U.S. cities analyzed. Overall,
consumer spending increased by 3.6 percent between April 2016 and April
2017.

Following a trend that began in February, spending by consumers in all
income groups and at businesses of all sizes made positive contributions
to overall growth in April 2017. Additionally, spending on non-durable
goods contributed 1.2 percentage points to growth, a significant bump
from the 0.3 percentage point drag on growth in March 2017.

Data visualization of the changes in local consumer spending growth over
the last 24 months can be found online.

This report provides a timely view of how the following cities and
surrounding metro areas are faring economically, both individually and
in aggregate: Atlanta, Chicago, Columbus, Dallas-Ft. Worth, Denver,
Detroit, Houston, Miami, Los Angeles, New York, Phoenix, Portland (OR),
San Diego, San Francisco, and Seattle. By looking at actual,
de-identified financial transactions, LCCI offers an ongoing, dynamic
view of the financial health of the U.S. consumer and the vibrancy of
the places where businesses operate.

“A month earlier we saw the highest year-over-year growth in local
consumer commerce in over two years, and now April was even higher,”
said Diana Farrell, President and CEO of the JPMorgan Chase Institute.
“April’s growth was broad-based, with net positive contributions from
spending by consumers of all ages and incomes, who increased their
spending at businesses of all sizes. Early signs for March and April are
positive, but we will want to see a few more months of sustained
momentum to ensure a recovery is underway in local consumer commerce.”

Additional key highlights from the latest Index include:

  • New York grew the fastest of the large cities in April 2017,
    registering a 5.2 percent growth rate. This is the highest growth rate
    for New York since the 5.6 percent growth rate in May 2014.
  • On average, local spending among large cities increased by 3.7 percent
    in April 2017, a significant increase from the 2.2 percent average
    growth rate registered in March 2017.
  • Detroit grew the fastest of the mid-sized cities, registering a 4.8
    percent growth rate in April 2017, a significant increase from the 2.7
    percent growth it experienced in March 2017.
  • Among smaller cities, Denver grew at 10.4 percent in April 2017,
    cooling off from the record high 15.8 percent growth rate it
    registered in March 2017.
  • Only Atlanta and Seattle experienced negative growth rates. Spending
    in Seattle and Atlanta dropped by 6 percent and 0.1 percent in April
    2017, respectively.

The LCCI offers unique advantages over existing measures of consumer
spending.

  • The LCCI captures actual transactions, instead of self-reported
    measures of how consumers think they spend.
  • The LCCI provides timely data on spending in 15 major metropolitan
    areas; such geographic granularity is unavailable in most other
    spending measures. These 15 cities mirror the geographic and economic
    diversity of larger metropolitan areas in the United States and
    account for 32 percent of retail sales nationwide.
  • The LCCI also presents a more granular view of local consumer commerce
    through five important lenses: consumer age, consumer income, business
    size, product type, and consumer residence relative to the location of
    the business. For each lens, we show how different segments
    contributed to year-over-year spending growth.
  • The LCCI captures economic activity in sectors that previously have
    not been well understood by other data sources. These include sectors
    such as food trucks, new merchants, and personal services.

Each release of the LCCI describes the economic picture of local
communities and provides a powerful
tool
for city development officials, businesses, investors, and
statistical agencies to better understand the everyday economic health
of consumers, businesses, and the places they care about.

About the JPMorgan Chase Institute

The JPMorgan Chase Institute is a global think tank dedicated to
delivering data-rich analyses and expert insights for the public good.
Its aim is to help decision makers – policymakers, businesses, and
nonprofit leaders – appreciate the scale, granularity, diversity, and
interconnectedness of the global economic system and use better facts,
timely data, and thoughtful analysis to make smarter decisions to
advance global prosperity. Drawing on JPMorgan Chase & Co.’s unique
proprietary data, expertise, and market access, the Institute develops
analyses and insights on the inner workings of the global economy,
frames critical problems, and convenes stakeholders and leading
thinkers. For more information visit: jpmorganchaseinstitute.com.

JPMorgan Chase
Steve O’Halloran, 302-282-5699
steve.ohalloran@chase.com

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